Bioanalytical Systems entered into a $6.5 million credit agreement with the First Internet Bank of Indiana.

The agreement provides the company with a term loan in the amount of $4.5 million, which was used to satisfy the company’s outstanding indebtedness with The Huntington Bank, and a revolving line of credit of up to $2 million, which the company may borrow from time to time.

The term loan and revolving facility mature June 23, 2022 and June 23, 2019, respectively.

Amounts outstanding under the term loan bear interest at a fixed per annum rate of 3.99%, while interest accrues on the principal balance of the revolving facility at a floating per annum rate equal to the prime rate less 25 basis points.

The company’s obligations under the credit agreement are guaranteed by BAS Evansville, the company’s wholly owned subsidiary. The company’s obligations under the agreement and BASEV’s obligations under the guaranty are secured by first priority security interests in substantially all of the assets of Bioanalytical Systems and BASEV, respectively, as well as mortgages on the company’s and BASEV’s facilities in West Lafayette, IN and Evansville, IN, respectively.